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Recovery of kinetic energy during driving cycles is the most effective option to improve fuel economy and reduce green house gas (GHG) emissions. Flywheel kinetic energy recovery systems (KERS) may boost this efficiency up to values of about 70%. An engine and vehicle model is developed to simulate the fuel economy of a compact car equipped with a TDI diesel engine and a KERS. Introduction of KERS reduces the fuel used by the 1.6L TDI engine to 3.16 liters per 100 km, corresponding to 82.4 g of CO₂ per km. Downsizing the engine to 1.2 liters as permitted by the torque assistance by KERS, further reduces the fuel consumption to 3.04 liters per 100 km, corresponding to 79.2 g of CO₂ per km. These CO₂ values are 11% better than those of today's most fuel efficient hybrid electric vehicle.

Downsizing and Turbo Charging (TC) and Direct Injection (DI) may be combined with Variable Valve Actuation (VVA) to better deal with the challenges of fuel economy enhancement. VVA may control the load without throttle; control the valve directly and quickly; optimize combustion, produce large volumetric efficiency. Benefits lower fuel consumption, lower emissions and better performance and fun to drive. The paper presents an engine model of a 1.6 litre TDI VVA engine specifically designed to run pure ethanol, with computed engine maps for brake specific fuel consumption and efficiency. The paper also presents driving cycle results obtained with a vehicle model for a passenger car powered by this engine and a traditional naturally aspirated gasoline engine. Preliminary results of the VVA system coupled with downsizing, turbo charging and Direct Injection permits significant driving cycle fuel economies.